Trade War Begins In 15 Months, US Manufacturing Industry Shrinks Due To Trade War

The US economy has been affected by the shrinking manufacturing sector. In the 15 months since the start of the US China trade war, the sharp drop in capital expenditure and the sharp increase in trade volume have hit the global manufacturing boom. In addition, the United States in recent months due to general strike and Boeing 737 MAX aircraft grounded problems, resulting in two consecutive months of manufacturing boom fell through the ups and downs.

The US Federal Reserve report showed that the US industrial output in September (2019) was down 0.4% compared with 8, which was worse than the expected decline of 0.1%, compared with the 0.1% decline in the year (2018), which was the first sight in 2016. Among them, manufacturing output fell by 0.5%, mining output fell by 1.3%, and utilities grew by 1.4%.

In September, manufacturing output fell 0.5%, down 0.6% from August, compared with a 0.9% decline last year, and a sharp drop in vehicle output caused by GM 40 thousand and 8 000 strike. Excluding auto manufacturing, output also declined by 0.2%, up from 0.7% in August.

Manufacturing industry accounted for 11.6% of GDP in the US, but the proportion of labor employment in the United States was less than 10%, and the importance of manufacturing industry to the US economy gradually declined. It is estimated that the GDP downturn, unemployment rate and the impact of private consumption can still be offset by the prosperity of the housing market, stock market and service sectors.